The final reading of Uncle Sam’s Q1 2024 growth came in at 1.4%, higher than the 1.3% second estimate but still lower than the advanced reading of 1.6%.
The Bureau of Economic Analysis details that, among goods-producing industries, weaknesses in primary metals (for durable goods manufacturing) and petroleum and coal products (for non-durable goods manufacturing) led the decrease in GDP contributions.
Within private services-producing industries, the leading contributors to the increase were retail trade (led by motor vehicle and parts dealers), finance and insurance (led by Federal Reserve banks, credit intermediation, and related activities), and health care and social assistance (led by ambulatory health care services).
Link to the BEA Final GDP Estimate
Here’s a breakdown of the GDP contributions by industry group:
In a separate report, the headline U.S. core durable goods orders grew by 0.1% m/m in May, slower than April’s 0.6% uptick but higher than the expected 0.5% decrease.
The more closely watched core durable goods orders surprisingly slipped by 0.1% m/m after a 0.4% increase in April and against estimates of a 0.2% increase.
Link to the Census Bureau’s durable goods report
Meanwhile, the weekly initial jobless claims data eased from 239K to 233K in the week ending June 22 and came in lower than the expected 236K reading. However, it also showed the four-week average rising by 3K from the previous week’s average.
Link to Department of Labor’s jobless claims data
Market Reactions
U.S. dollar vs. Major Currencies: 5-min
Overlay of USD vs. Major Currencies Chart by TradingView
A bearish pressure from the Asian session lost momentum and was partially reversed during the European session, enabling the U.S. dollar to trade in ranges ahead of the U.S. mid-tier data releases.
The Greenback fell sharply and dipped to new intraday lows at the reports’ releases. The bearish moves were soon reversed, however, likely due to traders taking off their positions ahead of Friday’s anticipated U.S. core PCE price index release.
The dollar capped the day mostly unchanged against most of its counterparts with the exception of the euro and the British pound which gained 0.21% and 0.12% against the dollar respectively.
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